In this crazy market I feel many agents have the attitude of their sellers, when in a short sale position, being somewhat disposable. Just a means to an end. The end being their paycheck.
We have a company here in town which will offer to purchase a home from a seller who is in distress. The investor then takes over the negotiations with the bank. Now, what i gladly admit is that they are amazing at negotiating. They are able to have people on staff who just sit and dial the phone all day, something many or even most Realtors are just not able to do. We don't have the time.
While this company is negotiating with the bank to get the short sale approved they list the home on RMLS with the same agent and start looking for an "end buyer". While on the surface this may seem illegal, the reality is many lawyers have reviewed this and find it 100% acceptable. Where we see a gray area is the fine line between legal, moral and ethical.
If the seller is going to be subject to any sort of deficiency judgment wouldn't it serve them best to have the end buyer be their buyer? If the investment company in the middle is making a clean profit of $20,000 for their work and if the end buyer is willing to pay the higher amount, shouldn't the seller be receiving the benefit of the higher price?
These companies are everywhere, in every major city, and they are likely not leaving anytime soon.
Here is where it gets clearly unacceptable from my point of view and it comes down to one word. The word is: AGENCY.
AGENCY:An expressed contractual relationship which can be created in writing or orally in which a principal authorizes and empowers the agent to act on behalf of the principal in dealing with third parties.
Really absorb that paragraph. It says somebody is trusting somebody else to act on their behalf, which means best interest. If you are a the Realtor and allow this third party to come in and negotiate with the bank on behalf of the seller is that third party in essence acting as the seller's agent? I think they are.
I will be most interested to see the aftermath of this most amazing time in real estate history. It hink our courts might see a very large backlog of cases.
Wednesday, February 24, 2010
Tuesday, February 23, 2010
House Bill 3610-A....Still Researching
Today the House passed 3610-A. What it will mean for homeowners is yet to be seen and believe it or not I don't have an opinion yet. I know, I know, big surprise there, as I normally do have an opinion.
One thing I do like is the bill requires the "lender" to give the borrower REASON why their loan modification is denied. There is a lot of ambiguity around this right now and requiring an actual reason seems to be a great idea.
It also requires the "lender" to file an affidavit stating their compliance with federal regulations and the reason the modification was denied.
I have copied and pasted some relevant portions which you might find interesting to read:
(b) If the beneficiary denies a request made under paragraph (a) of this subsection, the
beneficiary or the beneficiary’s agent in the notice shall provide the grantor with an expla-
nation of how the beneficiary or the beneficiary’s agent calculated that the grantor was not
eligible for a loan modification.
(a) If a grantor returns the form identified in [section 20 (6), chapter 19, Oregon Laws
2008,] ORS 86.737 (6) to the lender by the date specified on the form, the beneficiary or an agent
of the beneficiary shall review the information the grantor provided in the form and, in good faith,
shall process the grantor’s request. The beneficiary or the beneficiary’s agent, as soon as reasonably
practicable but not later than 45 days after receiving the form, shall notify the grantor
(4) Subsections (1) and (2) of this section do not apply to a beneficiary that determines in good
faith, after considering the most current financial information the grantor provides, that the grantor
is not eligible for a loan modification, provided that the beneficiary [informs] or the beneficiary’s
agent notifies the grantor in writing that the grantor is not eligible. In the notice, the benefi-
ciary or the beneficiary’s agent shall describe the basis for
It will be very interesting to see where this goes. Let's hope we see some change from this legislation.
One thing I do like is the bill requires the "lender" to give the borrower REASON why their loan modification is denied. There is a lot of ambiguity around this right now and requiring an actual reason seems to be a great idea.
It also requires the "lender" to file an affidavit stating their compliance with federal regulations and the reason the modification was denied.
I have copied and pasted some relevant portions which you might find interesting to read:
(b) If the beneficiary denies a request made under paragraph (a) of this subsection, the
beneficiary or the beneficiary’s agent in the notice shall provide the grantor with an expla-
nation of how the beneficiary or the beneficiary’s agent calculated that the grantor was not
eligible for a loan modification.
(a) If a grantor returns the form identified in [section 20 (6), chapter 19, Oregon Laws
2008,] ORS 86.737 (6) to the lender by the date specified on the form, the beneficiary or an agent
of the beneficiary shall review the information the grantor provided in the form and, in good faith,
shall process the grantor’s request. The beneficiary or the beneficiary’s agent, as soon as reasonably
practicable but not later than 45 days after receiving the form, shall notify the grantor
(4) Subsections (1) and (2) of this section do not apply to a beneficiary that determines in good
faith, after considering the most current financial information the grantor provides, that the grantor
is not eligible for a loan modification, provided that the beneficiary [informs] or the beneficiary’s
agent notifies the grantor in writing that the grantor is not eligible. In the notice, the benefi-
ciary or the beneficiary’s agent shall describe the basis for
It will be very interesting to see where this goes. Let's hope we see some change from this legislation.
Now Don't Get Too Excited About HB3656
The Oregon Senate voted to expand HB3656 today. The expansion regards the lender's right to pursue a borrower on a second mortgage after the home has been foreclosed upon.
Now before everyone gets all excited and thinks this just gives more people the right to walk away from their financial responsibilities because they were duped into obtaining the loan, let's read the details.
1. This only applies AFTER the home has been foreclosed. So if the borrower has stopped paying and the second is written off but the first is still being paid, this does not apply.
2. If the borrower does a short sale, this does not apply. This is AFTER a foreclosure.
3. The second mortgage (or note and trust deed) must have been created on the SAME day and in the same purchase as the first. Read that as an 80/20 loan scenario.
4. Now here is where it gets REALLY limited. The second to which this law is referring has to have been originated by or currently owed to the SAME lender who is foreclosing.
So really......I know of VERY few people who took out an 80/20 or a 90/10/10 with the SAME lenders.
What really amazes me is this statement made at one time by Senator Suzanne Bonamici (D-NW Portland/Washington County):
"It is no secret that many Oregonians were targeted with complicated loans that trapped them with high payments. This bill ensures a little more fairness if they lose their home."
How complicated is this: 80% of the purchase price of your home is being loaned by this bank. Another 20% is being loaned by this bank. The rate on the 20% is higher because of the increased risk to the lender by being in a second position. In addition, after 24 months the interest rate on your loan MAY adjust. If it does it will adjust no more than this percent every month and no more than this much every six months.
This is not complicated. What is complicated is that now that property values are no longer appreciating at the speed of light, people don't want to pay their debts. That is complicated!
Now before everyone gets all excited and thinks this just gives more people the right to walk away from their financial responsibilities because they were duped into obtaining the loan, let's read the details.
1. This only applies AFTER the home has been foreclosed. So if the borrower has stopped paying and the second is written off but the first is still being paid, this does not apply.
2. If the borrower does a short sale, this does not apply. This is AFTER a foreclosure.
3. The second mortgage (or note and trust deed) must have been created on the SAME day and in the same purchase as the first. Read that as an 80/20 loan scenario.
4. Now here is where it gets REALLY limited. The second to which this law is referring has to have been originated by or currently owed to the SAME lender who is foreclosing.
So really......I know of VERY few people who took out an 80/20 or a 90/10/10 with the SAME lenders.
What really amazes me is this statement made at one time by Senator Suzanne Bonamici (D-NW Portland/Washington County):
"It is no secret that many Oregonians were targeted with complicated loans that trapped them with high payments. This bill ensures a little more fairness if they lose their home."
How complicated is this: 80% of the purchase price of your home is being loaned by this bank. Another 20% is being loaned by this bank. The rate on the 20% is higher because of the increased risk to the lender by being in a second position. In addition, after 24 months the interest rate on your loan MAY adjust. If it does it will adjust no more than this percent every month and no more than this much every six months.
This is not complicated. What is complicated is that now that property values are no longer appreciating at the speed of light, people don't want to pay their debts. That is complicated!
Saturday, February 20, 2010
I am Growing Very Frustrated with Everyone Blaming the Banks
Today on the CDPE (Certified Distressed Property Expert) website. Another Realtor made a comment about how it would serve the banks right if everyone defaulted on their mortgages (or note depending on the state in which you reside). I was very distraught by her comment. Right now anyone who doesn't want to continue to make payments on a home with negative equity thinks they can just claim they have a hardship, dump the house, and just move on. Well guess what? WAKE UP WORLD, this DOESN'T work long term.
For your reading pleasure I am going to copy and paste the response I posted on the thread. The names have been changed to protect the somewhat innocent (yet obviously highly misguided!)
Jane Doe,
I am very disturbed by your comment that it would serve the banks right. Yes, they could have lessened the extent of the damage by not adjusting the rates once they saw what was happening, and many other times through the last couple years. But here is the biggest thing....the home owners promised to pay. And while some have hardships and legitimate issues, many people just don't want to pay for a house which isn't worth what they feel it should be.
To say it would serve the banks right if everyone defaulted is short sighted and you should think that through. If everyone defaulted and went into foreclosure then to whom would you sell homes?
Currently, in my market people have no shame about being on the default list, going to foreclosure, doing a short sale or filing bankruptcy. It is at a point where it is nearly trendy, as if it is a badge of honor to manipulate your bank out of as much money as possible. This impacts EVERYONE, our communities, society in general.
We need to STOP blaming the banks and require people take responsibility for the choices THEY made. Nobody forced them to take out these loans, nobody.
If people took more pride in their lives, more responsibility for their actions a lot of these short sales would be prevented. But in general, I see people just not caring. And what happens? People keep having their values dropped. People like me, who have been making the payments, working through trying to do our own modifications, and watching our neighbors just give up, fabricating "hardships", so they can go rent something nicer for less money. It is crazy.
For your reading pleasure I am going to copy and paste the response I posted on the thread. The names have been changed to protect the somewhat innocent (yet obviously highly misguided!)
Jane Doe,
I am very disturbed by your comment that it would serve the banks right. Yes, they could have lessened the extent of the damage by not adjusting the rates once they saw what was happening, and many other times through the last couple years. But here is the biggest thing....the home owners promised to pay. And while some have hardships and legitimate issues, many people just don't want to pay for a house which isn't worth what they feel it should be.
To say it would serve the banks right if everyone defaulted is short sighted and you should think that through. If everyone defaulted and went into foreclosure then to whom would you sell homes?
Currently, in my market people have no shame about being on the default list, going to foreclosure, doing a short sale or filing bankruptcy. It is at a point where it is nearly trendy, as if it is a badge of honor to manipulate your bank out of as much money as possible. This impacts EVERYONE, our communities, society in general.
We need to STOP blaming the banks and require people take responsibility for the choices THEY made. Nobody forced them to take out these loans, nobody.
If people took more pride in their lives, more responsibility for their actions a lot of these short sales would be prevented. But in general, I see people just not caring. And what happens? People keep having their values dropped. People like me, who have been making the payments, working through trying to do our own modifications, and watching our neighbors just give up, fabricating "hardships", so they can go rent something nicer for less money. It is crazy.
Monday, February 15, 2010
So, you think you are ready to buy a short sale....
Today I thought we should talk about short sales from the buyer's point of view. It seems so simple when we go shopping for the new house.
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From the onset I make sure to warn buyers of the potential struggles of purchasing a short sale. In fact, if they are first time buyers I give them the option, but highly discourage them from even taking a look.
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First, time. The seller may "accept" your offer to purchase, but that means nothing!! He could accept it in ten minutes, and in ten months you could still be waiting for your new dream home. Why? Because even though the seller is the owner and has the right to sell, the bank has to approve the loss they will be taking. And the bank doesn't do that without a lengthy process and many bumps along the way.
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I have listings right now which have been in the negotiation stage for over seven months! When you are wanting to move to your new home, seven months seems like an eternity.
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Second, condition of property. What buyers must understand is the seller has no real vested interest in selling this house. Foreclosure is just as simple and by time they get to the point of letting the house go, a few more credit points doesn't matter to them. There is no money to do a list of repairs. Either the buyer needs to do them, or they need to accept the property as it is.
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Third, the offer you wrote and the offer the seller accepted may not be the final terms of the deal. Sure, you agreed and the seller agreed, but remember, the bank has to agree to take the loss. You could have waited five months, six months, even longer and then the bank can come back and say they want $10,00o more.
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Lastly, I have no control. Though I am very experienced at short sales from a listing perspective I can't talk to the bank or tell the listing agent what to do. What I can do is only show the buyer properties listed by competent listing agents. Yes, I do have a list of questions I ask the listing agent and if she doesn't have the right answers we will avoid the property.
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If you are in the market for a new home and are considering a short sale, give it a lot of thought. Many buyers think they are up for the wait and then sit by and watch all these other great homes go up for sale, accept offers, and close....while they are still waiting. The love they feel for the house they wrote on slowly starts to dissolve. So think hard and find a good buyer's agent.
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I can be reached at 541-606-2954.
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From the onset I make sure to warn buyers of the potential struggles of purchasing a short sale. In fact, if they are first time buyers I give them the option, but highly discourage them from even taking a look.
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First, time. The seller may "accept" your offer to purchase, but that means nothing!! He could accept it in ten minutes, and in ten months you could still be waiting for your new dream home. Why? Because even though the seller is the owner and has the right to sell, the bank has to approve the loss they will be taking. And the bank doesn't do that without a lengthy process and many bumps along the way.
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I have listings right now which have been in the negotiation stage for over seven months! When you are wanting to move to your new home, seven months seems like an eternity.
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Second, condition of property. What buyers must understand is the seller has no real vested interest in selling this house. Foreclosure is just as simple and by time they get to the point of letting the house go, a few more credit points doesn't matter to them. There is no money to do a list of repairs. Either the buyer needs to do them, or they need to accept the property as it is.
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Third, the offer you wrote and the offer the seller accepted may not be the final terms of the deal. Sure, you agreed and the seller agreed, but remember, the bank has to agree to take the loss. You could have waited five months, six months, even longer and then the bank can come back and say they want $10,00o more.
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Lastly, I have no control. Though I am very experienced at short sales from a listing perspective I can't talk to the bank or tell the listing agent what to do. What I can do is only show the buyer properties listed by competent listing agents. Yes, I do have a list of questions I ask the listing agent and if she doesn't have the right answers we will avoid the property.
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If you are in the market for a new home and are considering a short sale, give it a lot of thought. Many buyers think they are up for the wait and then sit by and watch all these other great homes go up for sale, accept offers, and close....while they are still waiting. The love they feel for the house they wrote on slowly starts to dissolve. So think hard and find a good buyer's agent.
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I can be reached at 541-606-2954.
Monday, February 8, 2010
Let's Thank the Cheaters and Liars for Another Round of Paperwork.
Rumor has it ....new rules for claiming the home buyer tax credit. If you want to obtain the credit, you will have to file your taxes the old fashioned way...by mail, on paper! Oh, say it isn't so. WELL, I can't because it is so........you can't efile.
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Can you guess why? That is right............FRAUD!!!!!
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Can you guess why? That is right............FRAUD!!!!!
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Those claiming the credit must complete a new Form 5405 and include with their 2009 tax returns proper documents, including:
• A copy of the settlement statement.
• For mobile-home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract.
• For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy is required.
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Saturday, February 6, 2010
The Sweet Deal One West Bank has in Indymac Loans
Jul 11, 2008
Based on the deal they got, do you think they would prefer to modify a loan or just take the house? Let's do some fun math.
I wonder if there will be any retribution for these losses?
- FDIC regulators took over Indymac bank as it was going down.
- This was the largest bank failure since 1984
- Fourth largest bank failure in U.S. history
- OneWest was born from the remnants of Indymac.
- FDIC and OneWest created a shared loss agreement
- OneWest would purchase all first mortgages at 70% of the current balance
- OneWest would purchase Line of Equity Loans at 58% of the current balance
- In the event of foreclosure, the FDIC would cover from 80%-95% of losses, using the original loan amount, and not the current balance
Based on the deal they got, do you think they would prefer to modify a loan or just take the house? Let's do some fun math.
- Original loan amount was $150,000.
- With missed payments and added fees, the balance is now up to $165,000
- OneWest buys the loan for 70% of value, or $115,500
- The house is foreclosed upon and sells at $135,000.
- The loss to OneWest is calculated by the FDIC to be $15,000 (original loan amount less sales price.)
- If the FDIC were to cover 85% of the loss of this loan, OneWest would receive $12,750
- However, OneWest only paid $115,500 for the loan, so there was no actual loss, instead they received a $12,750 bonus for foreclosing!
I wonder if there will be any retribution for these losses?
What is With "Originally posted on such and such date"?
This blog is new to the web, but a few of these posts were originally posted on my personal blog. If you would like to take a look at the personal side of my world, that address is:
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http://realestatebarbie.blogspot.com
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I was asked to start a real estate informational blog, so this page was born. In order to give my early readers something to chew on, I brought over some older posts from my other page.
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I hope you enjoy reading about the wild ride that is my real estate career. I love it or I wouldn't keep doing it.
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A quick introduction in case you came upon this site and don't already know me.
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http://realestatebarbie.blogspot.com
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I was asked to start a real estate informational blog, so this page was born. In order to give my early readers something to chew on, I brought over some older posts from my other page.
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I hope you enjoy reading about the wild ride that is my real estate career. I love it or I wouldn't keep doing it.
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A quick introduction in case you came upon this site and don't already know me.
- I was born in Lane County in 1972. Which makes me older than I want to be, but experienced enough to know the market and the area.
- My real estate license was issued to me on February 1st. 2001
- I opened my first company, Real Estate by Design, in August of 2004.
- Real Estate by Design was sold to another agent in 2005 when I was offered a position as a managing broker at Coldwell Banker.
- The Coldwell Banker run only lasted 90 days. My choice.
- Upon leaving Coldwell I was lost for a while. In February of 2006 I opened up Emerald Valley Real Estate.
- I have 2 short sale designations. First was the CDPE, or Certified Distressed Property Expert. Then came the National Association of Realtors (trademark) Short Sale designation.
Thank You Saxon for the Great Workout! Originally posted 6/23/2009
I was so enraged after disconnecting from Saxon Mortgage today. For nearly two months I have been faxing required documents to their short sale department in order to get a house sold. Well, every time I called they needed something else. Why oh why did they not ask for all of it at once? Then, it takes 7-10 days for them to process each document and upload it to their system. I wish I knew what it really meant.
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Last week I was talking with a representative who took 19 minutes to find my authorization to speak with them. Today it was 90 seconds. Makes you wonder. The dear kind brain dead employee last week told me I should call back "one week" before the auction to see if they have all the papers needed. Well two things here: 1. If it takes 7-10 days to upload said docs, then how will calling one week before the auction be a good idea? 2. The day I was speaking to her was SIX DAYS before the scheduled auction date!
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So today I finally got somebody with a few neurons working. Nice guy really. It seems they bank doesn't feel the offer was good enough. They wanted $172,000. The offer was $135,000. They sent another Realtor out to do a BPO (Broker Price Opinion). They did a drive by. A drive by!!! HELLO!!!!!! The house looks perfect outside, but it is totally trashed inside. Not only that but if you don't go in the backyard, you can't see the destroyed defective LP siding!!!! Then, they have the nerve to tell me since the auction is in one day, there is simply not enough time to postpone everything to get a new BPO. Why didn't they do a full interior to begin with? The just of it is that they are going to get one nightmare of a house and they are under the impression it is worth more.
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What is amazing is the twit who did the BPO. A house TWO DOORS DOWN just sold for $157,000 and it was a heck of a lot nicer than this one.
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So out of my complete and total frustration I went on a nice 45 minute jog/walk. So thank you Saxon for a nice workout!
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Last week I was talking with a representative who took 19 minutes to find my authorization to speak with them. Today it was 90 seconds. Makes you wonder. The dear kind brain dead employee last week told me I should call back "one week" before the auction to see if they have all the papers needed. Well two things here: 1. If it takes 7-10 days to upload said docs, then how will calling one week before the auction be a good idea? 2. The day I was speaking to her was SIX DAYS before the scheduled auction date!
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So today I finally got somebody with a few neurons working. Nice guy really. It seems they bank doesn't feel the offer was good enough. They wanted $172,000. The offer was $135,000. They sent another Realtor out to do a BPO (Broker Price Opinion). They did a drive by. A drive by!!! HELLO!!!!!! The house looks perfect outside, but it is totally trashed inside. Not only that but if you don't go in the backyard, you can't see the destroyed defective LP siding!!!! Then, they have the nerve to tell me since the auction is in one day, there is simply not enough time to postpone everything to get a new BPO. Why didn't they do a full interior to begin with? The just of it is that they are going to get one nightmare of a house and they are under the impression it is worth more.
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What is amazing is the twit who did the BPO. A house TWO DOORS DOWN just sold for $157,000 and it was a heck of a lot nicer than this one.
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So out of my complete and total frustration I went on a nice 45 minute jog/walk. So thank you Saxon for a nice workout!
Thoughts on Short Sales. Originally posted 9/2/2009
Katie and I just returned from the CDPE training. We learned so much, it was a great experience. I would highly recommend it to any Realtor with whom I am not in direct competion for business.
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We learned a couple scary things. A lot of the adjustable loans out there have not adjusted yet...we have a huge supply of loans made at the end of the boom and a large array of "exotic" loans which have not come to their stress points yet. That is scary.........but don't run in fear!
Two great websites to look at for statistics are:
trendgraphix.com
or
brokermetrix.com
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Another interesting point coming up is the role Realtors are playing in short sales. We are Realtors. We list, show and assist our clients in selling our buying their homes. When did we become debt negotiators as well? Is debt negotiation in our scope of duty? If not, will our errors and omission insurance cover us if we have legal problems in the future? Are we going to see a lot of class action lawsuits against Realtors for advising our clients in these transactions?
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We have a lot of Realtors running around telling people false information. Have you heard any of these:
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We learned a couple scary things. A lot of the adjustable loans out there have not adjusted yet...we have a huge supply of loans made at the end of the boom and a large array of "exotic" loans which have not come to their stress points yet. That is scary.........but don't run in fear!
Two great websites to look at for statistics are:
trendgraphix.com
or
brokermetrix.com
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Another interesting point coming up is the role Realtors are playing in short sales. We are Realtors. We list, show and assist our clients in selling our buying their homes. When did we become debt negotiators as well? Is debt negotiation in our scope of duty? If not, will our errors and omission insurance cover us if we have legal problems in the future? Are we going to see a lot of class action lawsuits against Realtors for advising our clients in these transactions?
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We have a lot of Realtors running around telling people false information. Have you heard any of these:
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- Don't worry about consequences after a short sale. If it is your primary residence the lender can't come back after you, even if they foreclose.
- NOT TRUE. True, Oregon is a non-recourse state, lenders can't go for deficiency judgments (provided you meet certain criteria such as owner occupied). What nobody is saying is they can still sue you after the fact for not honoring the terms of the promissory note. Do they? Historically, not often, but we are in a whole new world right now. We can't say what they will do in the future.
- Because of the Mortgage Forgiveness Debt Relief Act of 2007 you don't have to pay tax on a 1099 for the deficiency.
- NOT TRUE. The MFDRA is only valid for OWNER OCCUPIED homes. And you cannot have refinanced with a cash out loan. If you did refinance you can still be eligible for the debt relief IF and ONLY IF you used the refinance money in order to pay off the original loans or used any cash out for improvements to the property. You can't have a cash out refinance where you took a $50,000 chunk of change and partied like a rock star for a few weeks.
- If you don't qualify for the MFDRA you can just say you are insolvent. Then you do not owe any tax.
- NOT TRUE. Insolvency isn't that easy. Your amount of debt forgiveness has to exceed your assets.
BofA Drama. Originally posted 9/23/2009
Did you know BofA / Countrywide now services over 50% of the home loans in the United States? This is scary because they are totally disorganized and irrational!
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For fun, I thought I would share with you a journal of my experience on one of their accounts.
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7/28/2009
We are finally given an email address for sending in our documents. At this point I have already faxed all documents in three times. Yes, I put the account number on the top of each page.
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8/6/2009
Local agent called and was doing the BPO today.
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8/9/2009
BPO is not returned yet. A negotiator will review the file on September 2nd.
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8/17/2009
BPO not returned to the bank yet.
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8/19/2009
BPO not back yet.
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8/20/2009
No negotiator is assigned yet. They sent an escalation request. Should be completed in 5 to 7 business days.
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8/26/2009
Nothing new, no updates. But hey, got to be on hold for a very long time.
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9/1/9
All documents are in, it has been escalated. But no new information.
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9/2/9
15 minutes on hold, had to hang up...meeting time
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9/2/9
No negotiator on file yet.
BPO is in.
NOT a Fannie loan
BPO was uploaded on 8/26
She is sending an email to her supervisor to see what is going on, including my contact information.
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9/8/9
Rasheda was very helpful, even gave me her email.
No negotiator assigned yet.
BPO is uploaded, but no progress
Did a 2nd escalation request. Cuz ya know, the first one did so much good.
Going directly to management via email.
Told me to email her on Friday to get an update.
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9/14/09
Notice of intent to foreclose expires on 8/16/09 and was I calling in to make a payment?? HELLO! I am the Realtor, not the borrower!
Transfer to short sale department.
While on hold I sent an email to Rasheda, it bounced. Either she no longer works there or she gave me a bad address.
On hold again. She was going to send another escalation request, but if they do that it will cancel out the first one and we will be even farther behind. The escalation request will expire on the 22nd, so I should call on the 23rd.
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9/14/09
Just for kicks I am calling back to see what kind of variation on the original story I can get.
Beatrice informed me there are no new updates and I should call back on the 23rd. At least that date seems to be a consistency.
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9/17/09
No new updates, I should call on the 23rd. Hey, there's that date again!
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9/18/09
Transferred a few times, and what do you know? NOTHING NEW!
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9/22/09
I am now being told the reason we are having such a long delay for a negotiator is because this is a Fannie Mae loan. (see noes from 9/2/9). Only certain negotiators can do Fannie loans. However, nothing new is noted on the account.
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9/23/09
Jennifer informed me that the file was not pending assignment and that was a new update as of today. The file is in valuation review. They have the wrong offer on file, but I said nothing. The correct offer is $13,000 higher. I have told them multiple times which offer they should have, the other two were dead....buyers walked. If I tell them they have the wrong offer I will have to fax the new one over and it will delay progress. Once I get a negotiator I will talk to her or him directly and present the newest offer.
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For fun, I thought I would share with you a journal of my experience on one of their accounts.
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7/28/2009
We are finally given an email address for sending in our documents. At this point I have already faxed all documents in three times. Yes, I put the account number on the top of each page.
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8/6/2009
Local agent called and was doing the BPO today.
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8/9/2009
BPO is not returned yet. A negotiator will review the file on September 2nd.
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8/17/2009
BPO not returned to the bank yet.
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8/19/2009
BPO not back yet.
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8/20/2009
No negotiator is assigned yet. They sent an escalation request. Should be completed in 5 to 7 business days.
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8/26/2009
Nothing new, no updates. But hey, got to be on hold for a very long time.
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9/1/9
All documents are in, it has been escalated. But no new information.
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9/2/9
15 minutes on hold, had to hang up...meeting time
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9/2/9
No negotiator on file yet.
BPO is in.
NOT a Fannie loan
BPO was uploaded on 8/26
She is sending an email to her supervisor to see what is going on, including my contact information.
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9/8/9
Rasheda was very helpful, even gave me her email.
No negotiator assigned yet.
BPO is uploaded, but no progress
Did a 2nd escalation request. Cuz ya know, the first one did so much good.
Going directly to management via email.
Told me to email her on Friday to get an update.
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9/14/09
Notice of intent to foreclose expires on 8/16/09 and was I calling in to make a payment?? HELLO! I am the Realtor, not the borrower!
Transfer to short sale department.
While on hold I sent an email to Rasheda, it bounced. Either she no longer works there or she gave me a bad address.
On hold again. She was going to send another escalation request, but if they do that it will cancel out the first one and we will be even farther behind. The escalation request will expire on the 22nd, so I should call on the 23rd.
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9/14/09
Just for kicks I am calling back to see what kind of variation on the original story I can get.
Beatrice informed me there are no new updates and I should call back on the 23rd. At least that date seems to be a consistency.
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9/17/09
No new updates, I should call on the 23rd. Hey, there's that date again!
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9/18/09
Transferred a few times, and what do you know? NOTHING NEW!
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9/22/09
I am now being told the reason we are having such a long delay for a negotiator is because this is a Fannie Mae loan. (see noes from 9/2/9). Only certain negotiators can do Fannie loans. However, nothing new is noted on the account.
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9/23/09
Jennifer informed me that the file was not pending assignment and that was a new update as of today. The file is in valuation review. They have the wrong offer on file, but I said nothing. The correct offer is $13,000 higher. I have told them multiple times which offer they should have, the other two were dead....buyers walked. If I tell them they have the wrong offer I will have to fax the new one over and it will delay progress. Once I get a negotiator I will talk to her or him directly and present the newest offer.
Laughing all the Way to the Short Sale Back of the Line. Originally posted October 4 2009
So the following link is to an article written in JULY by the Washington Post. According to the source, Bank of America was planning to roll out a program by August in which they would be able to approve a short sale in one week.
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Well, I guess since one of my offers has been in since JULY ...they failed. Wait, maybe I just got my offer in too quickly???
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http://www.washingtonpost.com/wp-dyn/content/article/2009/07/10/AR2009071002115.html
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Well, I guess since one of my offers has been in since JULY ...they failed. Wait, maybe I just got my offer in too quickly???
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http://www.washingtonpost.com/wp-dyn/content/article/2009/07/10/AR2009071002115.html
Short Sales Explained (in short). Originally posted on October 20 2009
A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
But to be technical, here's a more official definition:
- A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
- A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.
For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:
- Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
- Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
- Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. I hold the CDPE® Designation and am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.
If you have questions or feel you may qualify for a short sale, please contact me for a free consultation.
Understanding your options now could mean all the difference in the world.
My New Word
Permahold. Def: The state of being put on eternal hold while trying to communicate with a bank regarding a short sale transaction. It is close to permahell, which is where the real estate market seems to be heading.
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Let me tell you about my fun today. I called today and was on hold for 8 minutes. When I finally got to somebody who could help me I was told they had recently gone through a system upgrade. Because she had the new system and not the old system she was not able to retrieve the authorization they have on file to speak with me.
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Her solution was to put me back in the big permahold swimming pool and see if somebody else could help me.
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I entered the information via the buttons on my phone as instructed. I was greeted with the following: "We are sorry, we can't continue processing this call, please hang up.". SERIOUSLY??
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3:22PM I am calling back to get placed in the permahold pool. Kelly answered the call at 3:25Pm. She was not able to get any information for me as she is in the wrong department. She gave me a new phone number to call (yeah...already have that one), and told me to not enter any numbers when prompted. So I didn't. So then it gave me the whole "We are sorry, we can't continue processing this call, please hang up." OH MY GOSH!!!
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3:30 PM Calling back in.....entered social security number and account number as prompted. Back on permahold in permahell. Oh, my anticipated hold time is 5 to 10 minutes. My call is VERY important to them and they look forward to assisting me. You know, I have to say, I am not feeling that right now. Hey, while we are on hold let me tell you the new hot word at Chase. Are you ready? The hot word is "activate". Tee hee....activate. I think the bigwigs at these banks have weekly meetings while they come up with ridiculous new words to use to make us think they are working on things.
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Last week I called and spoke with a really nice gentleman. He told me they had a new process in which the customer no-service (okay he didn't say "no") would need to go through a list and double check all the documents had been received, at which point they would "activate" the file. You have to love it? He said this would make us "active" in the loss mitigation department.
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He was also highly amused the previous person on the 24th had not done this because it seems they get credit for every file they can activate. Too bad they don't have motivation to actually get the deals closed!
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3:36PM. Brittney answered the phone. I wonder if it is Brittney Spears at an all time career low. She was able to actually verify. It was made active and she had the same information I had. She told me to check back in on Friday. I asked her for a current estimate of time to an approval and she said it was 90-120 days from the date of ACTIVATION. This file has been COMPLETE and on their desks since August 12th.
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Gotta love...........Chase Bank
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Let me tell you about my fun today. I called today and was on hold for 8 minutes. When I finally got to somebody who could help me I was told they had recently gone through a system upgrade. Because she had the new system and not the old system she was not able to retrieve the authorization they have on file to speak with me.
.
.
Her solution was to put me back in the big permahold swimming pool and see if somebody else could help me.
.
.
I entered the information via the buttons on my phone as instructed. I was greeted with the following: "We are sorry, we can't continue processing this call, please hang up.". SERIOUSLY??
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.
3:22PM I am calling back to get placed in the permahold pool. Kelly answered the call at 3:25Pm. She was not able to get any information for me as she is in the wrong department. She gave me a new phone number to call (yeah...already have that one), and told me to not enter any numbers when prompted. So I didn't. So then it gave me the whole "We are sorry, we can't continue processing this call, please hang up." OH MY GOSH!!!
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3:30 PM Calling back in.....entered social security number and account number as prompted. Back on permahold in permahell. Oh, my anticipated hold time is 5 to 10 minutes. My call is VERY important to them and they look forward to assisting me. You know, I have to say, I am not feeling that right now. Hey, while we are on hold let me tell you the new hot word at Chase. Are you ready? The hot word is "activate". Tee hee....activate. I think the bigwigs at these banks have weekly meetings while they come up with ridiculous new words to use to make us think they are working on things.
.
.
Last week I called and spoke with a really nice gentleman. He told me they had a new process in which the customer no-service (okay he didn't say "no") would need to go through a list and double check all the documents had been received, at which point they would "activate" the file. You have to love it? He said this would make us "active" in the loss mitigation department.
.
.
He was also highly amused the previous person on the 24th had not done this because it seems they get credit for every file they can activate. Too bad they don't have motivation to actually get the deals closed!
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3:36PM. Brittney answered the phone. I wonder if it is Brittney Spears at an all time career low. She was able to actually verify. It was made active and she had the same information I had. She told me to check back in on Friday. I asked her for a current estimate of time to an approval and she said it was 90-120 days from the date of ACTIVATION. This file has been COMPLETE and on their desks since August 12th.
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Gotta love...........Chase Bank
Real Vs. Personal Property
Tonight I had a great email question from one of my buyers. She wanted to know when she sold her house what items were to stay and which ones could go. For the sake of saving time, I am going to just post my response to her question, right here, on my blog!!!
Terrific question! There are two classifications of property, real and personal. Real property is real estate (structure and land).
Personal property is everything else, think couches, television, etc.
Personal property is converted to REAL property when it is attached to real property. So for example a microwave sitting on the counter is PERSONAL property. But one like in this house, mounted above the stove is REAL because it is attached to the house.
Light fixtures are REAL, they are ATTACHED. Here is a fun one. Curtain rods are real property (attached), but the curtains themselves are personal property.
So the way it works when writing an offer is any REAL property is assumed to stay unless it is specifically excluded. Any personal property we wish to say we request ( i think page 2 of the contract).
When you list your house just remember anything that is attached to the house is assumed to stay, anything not attached is not.
Now we are getting into a new phase of electronics and that is the wall mount plasma TV. Technically they are attached, so they should be considered REAL property, but nobody takes it that way. Perhaps I shall blog about that....I might even copy and paste this email and make it my blog subject!
Terrific question! There are two classifications of property, real and personal. Real property is real estate (structure and land).
Personal property is everything else, think couches, television, etc.
Personal property is converted to REAL property when it is attached to real property. So for example a microwave sitting on the counter is PERSONAL property. But one like in this house, mounted above the stove is REAL because it is attached to the house.
Light fixtures are REAL, they are ATTACHED. Here is a fun one. Curtain rods are real property (attached), but the curtains themselves are personal property.
So the way it works when writing an offer is any REAL property is assumed to stay unless it is specifically excluded. Any personal property we wish to say we request ( i think page 2 of the contract).
When you list your house just remember anything that is attached to the house is assumed to stay, anything not attached is not.
Now we are getting into a new phase of electronics and that is the wall mount plasma TV. Technically they are attached, so they should be considered REAL property, but nobody takes it that way. Perhaps I shall blog about that....I might even copy and paste this email and make it my blog subject!
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